Will W.R. Berkley Pull Off a Surprise This Earnings Season?

W.R. Berkley Corporation WRB is expected to register an improvement in its top and bottom lines when it reports third-quarter 2025 results on Oct. 20, after market close.The Zacks Consensus Estimate for WRB’s third-quarter revenues is pegged at $3.67 billion, indicating 7.7% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $1.07 per share. The Zacks Consensus Estimate for WRB’s second-quarter earnings has moved up 2.8% in the past 30 days. The estimate suggests a year-over-year increase of 15%.What the Zacks Model UnveilsOur proven model conclusively predicts an earnings beat for W.R. Berkley this time around. The right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here.Earnings ESP: W.R. Berkley has an Earnings ESP of +1.62%. This is because the Most Accurate Estimate of $1.08 is pegged higher than the Zacks Consensus Estimate of $1.07. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. W.R. Berkley Corporation Price and EPS Surprise W.R. Berkley Corporation price-eps-surprise | W.R. Berkley Corporation QuoteZacks Rank: W.R. Berkley currently carries a Zacks Rank #3.  Factors to ConsiderGross premiums written in the Insurance segment are likely to have benefited from the well-performing other liability, short-tail lines, professional liability, workers' compensation, and commercial auto. We expect the metric to be $3.5 billion, indicating an increase of 9.8% from the year-ago reported number.The Reinsurance & Monoline Excess segment’s gross premiums written are expected to have improved, banking on well-performing monoline excess and property reinsurance. We expect the metric to be $425 million, suggesting a rise of 2.6% from the year-ago reported number.  The Zacks Consensus Estimate for second-quarter 2025 premiums earned is pegged at $3.1 billion, indicating an increase of 7.5% from the year-ago reported quarter. Our estimate for the metric is pegged at $3.1 billion, indicating a 7.7% upside from the year-ago reported number.The ongoing growth in the invested assets from strong operating cash flow and new money rates on fixed maturity securities that remain comfortably above average book yield is likely to have aided net investment income. The Zacks Consensus Estimate for third-quarter 2025 net investment income is pegged at $366 million, indicating an increase of 13% from the year-ago reported quarter. Our estimate for the metric is pegged at $352.4 million, indicating an 8.8% upside from the year-ago reported number.Improvement in premiums, coupled with higher investment income, is likely to have aided the top line in the to-be-reported quarter. Higher losses and loss expenses, other operating costs and expenses, and expenses from non-insurance businesses are likely to have increased costs. We expect total expenses to increase 7.5% to $3.1 billion.Growth in net premiums earned and a non-recurring benefit associated with compensation costs are likely to have contributed to the improved expense ratio. We estimate the metric to be 28.54 in the to-be-reported quarter. Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which, in turn, is likely to have led to an improvement in the combined ratio. The Zacks Consensus Estimate and our estimate for the combined ratio are both pegged at 90.98.Continued share buybacks are likely to have provided additional support to the bottom line.Other Stocks to ConsiderHere are three P&C insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:Arch Capital Group Ltd. ACGL has an Earnings ESP of +7.19% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.01, indicating a year-over-year increase of 1%. You can see the complete list of today’s Zacks #1 Rank stocks here.ACGL’s earnings beat estimates in each of the last four reported quarters.Kinsale Capital Group, Inc. KNSL has an Earnings ESP of +2.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.74, indicating a year-over-year increase of 12.8%.KNSL’s earnings beat estimates in each of the last four reported quarters.RenaissanceRe Holdings Ltd. RNR has an Earnings ESP of +20.77% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $7.87, indicating a year-over-year decrease of 23%.RNR’s earnings beat estimates in three of the last four reported quarters and missed in one.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.R. Berkley Corporation (WRB): Free Stock Analysis Report RenaissanceRe Holdings Ltd. (RNR): Free Stock Analysis Report Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks